<img class="gwt-Image" src="/photo/48014882.cms" style="width: 800px; height: 600px;" /> Sponge Iron maker <keyword id="90610" type="COMPANY" weightage="100" keywordseo="Monnet-Ispat">Monnet Ispat</keyword> and Energy was among the volume buzzers and jumped limit up 20 percent on news that it would divest a controlling stake in its power generation arm in a bid to cut debt. 
 Monnet Ispat surged 7.15 rupees to 42.90 rupees on the <keyword id="53581" type="CITY" weightage="100" keywordseo="NATIONAL-STOCK-EXCHANGE">National Stock Exchange</keyword>. The stock has fallen 72 percent over one year as it had a huge outstanding debt of 10,737 crore rupees at the end of March 2014 
 Monnet signed a pact with <keyword id="47954" type="COMPANY" weightage="100" keywordseo="JSW-Energy">JSW Energy</keyword> to sell its 1,050 MW power plant, still under construction, in Odisha. The thermal plant, under <keyword id="184171" type="ORGANIZATION" weightage="100" keywordseo="Monnet-Power-Company">Monnet Power Company</keyword>, is located in a coal-rich area and has 2 units each worth 525 megawatts. Shares of JSW Energy fell 0.6 percent to 98.75 rupees on the NSE, post the deal's announcement. 
 
(Image credits: coalscam)

It's up, up and away for Monnet Ispat

<img class="gwt-Image" src="/photo/45569573.cms" />

	 Energy sector major <keyword id="90610" type="COMPANY" weightage="20" keywordseo="Monnet-Ispat">Monnet Ispat</keyword> and Energy Limited (MIEL) has announced the exit of its director, <keyword id="2648025" type="UNKNOWN" weightage="20" keywordseo="Vikram-Deswal">Vikram Deswal</keyword>, from the company’s board. The company made the disclosure in its filing to National Stock Exchange (<keyword id="6354646" type="CITY" weightage="20" keywordseo="NSE">NSE</keyword>). 
	 “…Vikram Deswal, Director, has informed to the Company that his work and responsibilities in <keyword id="2648026" type="UNKNOWN" weightage="20" keywordseo="East-Bridge-Capital-Management-Ltd">East Bridge Capital Management Ltd</keyword>., Boston, USA where he is working, have grown significantly and he is unable to allocate appropriate time required for performing the duties as a Director in the Company and therefore, he relinquishes the office with immediate effect,” the company stated in its letter. 
	 
	Deswal was a non-executive director at MIEL since May 2012 and also served as a director at Monnet Group. He had co-founded the advisory firm, East Bridge Capital Management Ltd, with Shakeeb Amal and had formed its wholly-owned subsidiary, East Bridge Capital Onshore Fund in 2011. The company is based out of Boston and invests in Indian capital markets. 
	 
	Representational Image: Indiatimes.com

Vikram Deswal Exits Monnet Ispat Board

<img class="gwt-Image" src="/photo/52306166.cms" /> 
 A high-ranked government official has said that the government is planning to issue notices to two companies, one being <keyword id="6440383" type="COMPANY" weightage="100" keywordseo="Essar-Power">Essar Power</keyword> for not paying its dues to Jharkhand government over the Tokisud North coal block; the other enterprise that would receive the notice is <keyword id="161385" type="COMPANY" weightage="100" keywordseo="Monnet-Ispat-Energy">Monnet Ispat &amp; Energy</keyword>, since it got late in paying upfront fees on a mine that it had won in an auction. 
 
Both companies will get a show-cause notice, asking them why their proportionate bank guarantees should not be forfeited by the government. 
 
Talking of Essar Power, mining lease for Tokisud coal block, the most expensive of those bids, was executed in its name but it is yet to pay the dues to Jharkhand. Earlier, the Tokisud coal block belonged to GVK Power, but the Supreme Court cancelled its permit. 
 
A spokesperson from Essar Power MP said that the initial amount of Rs 147 crore has been paid to the coal ministry while signing the agreement in March 2015, and two more instalments of upfront payments worth Rs 53 crore have also been paid. Once the company receives clarifications from the government, the third and final instalment of Rs 18 crore will be paid too. 
 
<a href="http://theindiantalks.com/wp-content/uploads/2015/02/an_open_cast_coal_mine.jpg">Image source</a>

Show-cause notices to Essar Power and Monnet Ispat over unpaid dues

<img class="gwt-Image" src="/photo/48572902.cms" /> <keyword id="260829" type="COMPANY" weightage="100" keywordseo="Monnet">Monnet</keyword> Ispat &amp; Energy, a steel maker, rebounded from 3-month lows on news that the company may sell off stakes in units in a bid to cut down on debt payments. 
 Monnet said it was in talks with larger rival <keyword id="47912" type="CITY" weightage="100" keywordseo="Bhushan-Steel">Bhushan Steel</keyword> to exit its 35 percent stake in Orissa Sponge Iron &amp; Steel Ltd., which owns ore mines in Odisha. Additionally, Monnet was negotiating the sale of its power division with <keyword id="45609" type="CITY" weightage="100" keywordseo="JSW-Steel">JSW Steel</keyword>, which will help it cut 4,000 crore rupees liability from its balance sheet. 
 
Debt-laden Monnet will still have 7,000 crore rupees of loans on its balance sheet after the proposed sale of its power division. 
 Monnet rose 2.35 rupees, or 7.5 percent, to 33.60 rupees on the <keyword id="53581" type="CITY" weightage="100" keywordseo="NATIONAL-STOCK-EXCHANGE">National Stock Exchange</keyword> where 4.1 lakh shares were traded compared with the 5-day average of 1.51 lakh shares 
 
Monnet has seen its market capitalisation plunge 71 percent to 201 crore rupees in the past one year as investors exited the steel sector globally owing to a sharp fall in demand. Lower sales have made servicing debt difficult for steel companies of all sizes, prompting them to push for asset sales. 
 
(Image credits: Indiatimes)

Monnet Ispat & Energy rebounds from 3-month lows on plans to take measures to cut down on debt payments

major cos: RameshNew Delhi, Mar 12 () The insolvency and bankruptcy lawhas resulted in recovery of just 10 per cent of defaultedloans in case of companies other than the seven big onesreferred for resolution, senior Congress leader Jairam Rameshsaid in Rajya Sabha on Thursday.Speaking on a bill to further amend the Insolvency andBankruptcy Code to give protection to new owners of a loandefaulter company against prosecution for misdeeds ofprevious owners, Ramesh said of the 970 cases referred to IBC,780 have been liquidated, indicating a mortality rate of 80per cent.The first objective of the IBC was to save companies butwith a mortality rate of 80 per cent it is not life saving, hesaid.Ramesh said against admitted claims of Rs 3.51 lakhcrore, Rs 1.50 lakh crore has been recovered by way ofauctioning defaulting firms to new buyers.The recovery was 43 per cent, implying that banks took ahair cut of 57 per cent on their loans, he said.If the big seven firms -- Electrosteel, Bhushan Steel,Monnet Ispat, Essar Steel, Alok Industries, Bhushan Power &amp;Steel and Jyoti Structures are excluded then the totalrecovery is 10 per cent, he said, "This means banks took haircut of 90 per cent.""That is matter of great concern," he said.Ramesh also sought revisiting provision in the amendedIBC that gives power to resolution professional to order otherfirms such as small and micro enterprises to continuesupplying goods and services to the defaulter firm.Under the law, a resolution professional oversees theinsolvency process.This raises the risk of default for MSME firms, he saidseeking revisiting of the provision in the bill on supplyingto defaulter firm."You should not sacrifice interest of MSME sector," hesaid.He went on to advocate a special regime for MSMEs byamending the 2006 MSME Act by allowing them to list accountsreceivable above Rs 1 crore so they can invoke IBC to recoverdue amounts.MSMEs face cash flow issues mostly due to delayedpayments, he said.Earlier, introducing the Insolvency and Bankruptcy Code(Amendment) Bill 2020, Finance Minister Nirmala Sitharamansaid insolvency and bankruptcy code (IBC) was brought in 2016as desired results were not coming from prevalent laws toresolve defaults.Since 2016, several amendments to IBC have been broughtto keep pace with developments in the outside world and orderspassed by courts and tribunals on their interpretation of thelaw, she said.She said the bill was brought in the previous Wintersession of Parliament but couldn't be passed and so anordinance was promulgated. The present bill is to convert theordinance into a law.Mahesh Poddar (BJP) said the amendment to the IBC willprotect current management from past mistakes of previousowners. ANZDV DV

IBC led to recovery of just 10% of defaulted loans in non-

<img class="gwt-Image" src="/photo/48013965.cms" style="width: 800px; height: 600px;" /> The <keyword id="6354813" type="COMPANY" weightage="100" keywordseo="nifty">Nifty</keyword> started Friday on a positive note with shares such as <keyword id="6354446" type="CITY" weightage="100" keywordseo="BHEL">BHEL</keyword>, Larsen &amp; Toubro and Hindalco leading the early charge as traders latched on to some beaten down valuations and brokerage upgrades. <keyword id="6357150" type="CITY" weightage="100" keywordseo="TCS">TCS</keyword>, whose first quarter sales missed analysts estimates, fell 16 rupees at 2,505 in the first 10 minutes of trade. 

	Nifty's Advance-Decline Ratio stood at 3:1 with the Index quoting 30 points higher at 8,359. The Nifty is likely to see resistance coming in at 8,420-8,370 levels and the support at 8,325-8,275 points. Other major indices in the early morning uptrend were CNX Metals Index and CNX Media Index.
 On the <keyword id="43628" type="CITY" weightage="100" keywordseo="Bombay-stock-exchange">Bombay Stock Exchange</keyword>, the <keyword id="6484188" type="CITY" weightage="100" keywordseo="Sensex">Sensex</keyword> was up a modest 94 points at 27,668. The Advance-Decline Ratio stood at 7:3 on the Index, where Vedanta, <keyword id="6653" type="CITY" weightage="100" keywordseo="ICICI-bank">ICICI Bank</keyword> and Coal India were among the early winners. <keyword id="6359432" type="PERSON" weightage="100" keywordseo="Britannia">Britannia</keyword>, Avanti Feeds, Eveready and Huhtamaki Papers were the stocks that hit fresh highs on the National Stocks Exchange. On the volume buzzers chart were Bhushan Steel, Monnet Ispat and <keyword id="2942825" type="UNKNOWN" weightage="100" keywordseo="R-S-Software">R S Software</keyword>. 

	Foreign funds continued to remain net sellers on Indian equities on Thursday. The sold net 254 crore rupees of stocks, their 5th straight day of sales and their sales in the derivatives markets stood at 1,247 crore rupees in Index Futures and 497 crore rupees in Stock Futures. These numbers point to further weakness in Indian stocks.
 And now for a bit of good news: the IMF has retained its forecast for global growth at 3.8 percent for 2016. It pegs India's <keyword id="35050" type="CITY" weightage="100" keywordseo="gdp">GDP</keyword> expansion at 7.5 percent, making us the fastest growing economy in the world. 
	 
	(Image credits: paladinpost)

The day's begun with a positive note!

<img class="gwt-Image" src="/photo/48013201.cms" /> 
The Nifty is likely to remain weak and trade in a sideways band on Friday as investors and traders refrain from taking long positions ahead of the weekend and as overseas cues continue to be muted. 
 Meanwhile, stocks in Asia posted minor gains after Chinese authorities stepped into absorb panic from their markets. Markets on <keyword id="42111" type="COMPANY" weightage="100" keywordseo="Wall-Street">Wall Street</keyword> closed with modest gains of 0.19-0.23 percent on Thursday. Commodities offered little or no clue on the direction which equities may take. Crude oil futures continued near 3-month lows, Copper and Gold futures were trading flat. 
 
The Nifty is likely to see resistance coming in at 8,420-8,370 levels and the support at 8,325-8,275 points. The Index closed at 8,328, down 35 points on Thursday, falling for a 3rd day in a row. 
 
Foreign funds continued to remain net sellers on Indian equities on Thursday. The sold net 254 crore rupees of stocks, their 5th straight day of sales and their sales in the derivatives markets stood at 1,247 crore rupees in Index Futures and 497 crore rupees in Stock Futures. These numbers point to further weakness in Indian stocks. 
 And now for a bit of good news: the IMF has retained its forecast for global growth at 3.8 percent for 2016. It pegs India's <keyword id="35050" type="CITY" weightage="100" keywordseo="gdp">GDP</keyword> expansion at 7.5 percent, making us the fastest growing economy in the world. 
 
 
STOCKS TO WATCH: 
 <keyword id="6357585" type="CITY" weightage="100" keywordseo="Tata-Consultancy-Services">TATA CONSULTANCY SERVICES</keyword>: Top software exporter failed to meet sales forecast for the fourth time in a row. Q1 Sales rose 6 percent sequentially to 25,668 crore rupees, below analysts expectations. Net Profit fell 3.3 percent sequentially to 5,709 crore rupees. The software giant's attrition rate surged to 15.9 percent. Major global brokerages remain optimistic on TCS's futures growth and they maintain their `Buy' stance on the stock. 
 
BHARAT HEAVY ELECTRICALS: Brokerage CLSA has upgraded the stock to `Buy' from `Sell' and raised its price target to `320 per share from `205 earlier, citing the company to be the biggest beneficiary of the surge in orders in FY16. CLSA sees EPS double over FY15 - 17 as raises FY16 order flow by 17%. 
 <keyword id="10862" type="CITY" weightage="100" keywordseo="Wipro">WIPRO</keyword>: Has finalised a deal to buy a digital Danish firm for 85 million euros. 
 <keyword id="6653" type="CITY" weightage="100" keywordseo="ICICI-bank">ICICI BANK</keyword>: The lender may sell its <keyword id="100080" type="ORGANIZATION" weightage="100" keywordseo="housing-finance">Housing Finance</keyword> Arm for `4,400 crore rupees to private equity players, reports the Economic Times. The unit contributes to 10 percent of the lender's total loan book and focuses on financing affordable housing. 
 
JSW ENERGY: signed a non-binding pact to buy out Monnet Ispat's 1,050 MW power plant in Odisha. 
 
MAHINDRA &amp; MAHINDRA: The auto giant is set to enter the branded oils and pulses category with a sales target for `1,000 crore rupees in the first year of operation. 
 
TITAGARH WAGONS: Sets floor price of `104.64/share for its placement process that is aimed at raising 250 crore rupees from institutional investors. 
 
(Image credits: openmarkets)

Top things to look
out for in the markets today

<img class="gwt-Image" src="/photo/50103330.cms" />A tool provided by the Reserve Bank of India (RBI) to help lenders tackle bad debts is instead helping to camouflage the scale of the problem, evidence of how the country's banks will struggle to meet an ambitious clean-up target in 16 months' time. 
 
India's banks are grappling with more than $110 billion of corporate stressed debt, a burden that is holding back fresh loans and hampering a speedier economic recovery. 
 
Hoping to press banks to acknowledge the size of bad debts and tackle them, the RBI last week set a March 2017 goal, although it did not specify exactly what would have to be achieved by that date. 
 
Emphasising the challenge ahead for governor Raghuram Rajan is the growing debate around the most high profile tool the RBI has offered lenders to date - strategic debt restructuring (SDR), a provision aimed at helping banks swap unpaid debt for majority control. 
 
Rajan has campaigned to get banks to classify debt correctly, and to oust errant company owners. Commercial banks say his team has been active, checking provisions and exactly how loans are recorded and reported. 
 
Yet while banks, including India's largest, have taken advantage of the benefits of SDR, none have yet used it to effectively tackle the underlying problems. 
 
Crucially, SDR allows debt in the process to be classed as "standard", without extra provisions or writedowns, for 18 months. But without other changes, that may create trouble down the line, analysts warn. 
 
"As banks through SDR are able to delay provisions on the stressed SDR accounts by 18 months, it would result in bunched up provisioning," Credit Suisse analysts said in a note, adding this could add to banks' already elevated credit costs. 
 
So far, since SDR was introduced in June, it has been invoked by banks in nine cases, with at least one other due. Most are steel, resources and infrastructure firms. 
 
In total, according to brokerage Religare, known SDR debts amount to some 641 billion rupees ($9.6 billion), or about 1 percent of all loans. 
 
But none of these cases have seen banks swap debt for equity, take control or significantly cut debt. 
 
TAKING A HAIRCUT 
 
The first SDR was invoked in July for Electrosteel Steels, to tackle 106 billion rupees ($1.6 billion) of debt, more than 11 times its market capitalisation. 
 
But its lenders, including State Bank of India and ICICI Bank, have yet to complete the swap or decide on a new investors, although bankers say there are suitors. 
 
According to Credit Suisse, private sector bank ICICI has the largest proportion of SDR loans as a percentage of its total, followed by state-run United Bank of India and Canara Bank. 
 
"We are unsure whether banks will benefit. This is just to delay the recording in the NPAs (non-performing assets) at present," said Priyanka Poddar, an analyst at Fitch Ratings' Indian affiliate, India Ratings and Research. 
 
A sharp drop in the share prices of the troubled firms at the heart of the SDR provision also spells trouble for the plan to use a swap to turn all debt into equity in one fell swoop. 
 
For these firms, even swapping debt for a majority stake will barely dent the arrears, as most have debts between 15 and 20 times the size of their market capitalisation. 
 
For example, Monnet Ispat, a manufacturer of sponge iron, steel and ferroalloys, should see banks take control by swapping just 3 percent of its more than 118 billion rupees of debt for equity. 
 
But bankers say the efforts may not be in vain and the process has a timeframe, making any bid to hide bad debts with SDR a short-lived one. 
 
"We may fail, though I'm not saying that we will. But it is not that we are trying to avoid NPA," said one senior banker at a state-run bank involved in SDR. 
 
He said banks were facing hitches including resistance from shareholders and difficulty agreeing on a debt haircut. 
 
RBI Deputy Governor S.S. Mundra said on Tuesday the central bank would look into the use of the tool, but cautioned the market against writing it off too soon. 
 
"It is work in progress," he told reporters. 
 
(Image: Indiatimes)

You Searched For "Monnet Ispat" and got 8 results

It's up, up and away for Monnet Ispat

Shailendra Bhatnagar

Vikram Deswal Exits Monnet Ispat Board

Purba Das

Show-cause notices to Essar Power and Monnet Ispat over unpaid dues

BI India Bureau

Monnet Ispat & Energy rebounds from 3-month lows on plans to take measures to cut down on debt payments

Shailendra Bhatnagar

IBC led to recovery of just 10% of defaulted loans in non-

PTI

The day's begun with a positive note!

Shailendra Bhatnagar

Top things to look out for in the markets today

Shailendra Bhatnagar

Huge challenge lies in front of Raghuram Rajan as banks can still mask bad debts

BI India Bureau